Justin Davis sold a car that he had owned for 5 years for $1,200. He had paid $16,800 for the car. What was the rate of depreciation? Find the answer to the nearest whole percent.

Question

Justin Davis sold a car that he had owned for 5 years for $1,200.  He had paid $16,800 for the car.  What was the rate of depreciation?  Find the answer to the nearest whole percent.

foolghost14 · Answer

so add $16,800+$1,200=?
what's the answer

danielala · Answer

$\color{#0cbb34}{\text{Originally Posted by}}$ @foolghost14
so add $16,800+$1,200=?
what's the answer
$\color{#0cbb34}{\text{End of Quote}}$ 18,000

foolghost14 · Answer

yes that correct

danielala · Answer

$\color{#0cbb34}{\text{Originally Posted by}}$ @foolghost14
yes that correct
$\color{#0cbb34}{\text{End of Quote}}$
Thank you very much

foolghost14 · Answer

np

Convert · Answer

@foolghost14
Over 5 years we see that the price of the car he bought went down by $15,600 (16,800-$1,200) 
And because of this we add it into the equation 
Depreciation rate= Annual depreciation rate/total cost
Annual depreciation rate= $15,600/5= $3,120 
Depreciation rate= $3,120/$15,600
$3,120/$15,600= 0.2
1.00-0.2=0.8
0.80= 80%
Answer: The car depreciated by 80% in 5 years is what I believe it'd be.